Markets Continue Robust Activity
Single Family Sales continued their brisk activity in August with 127 homes selling, albeit down from the 179 homes which sold in July, 2020, but significantly higher than the 91 home sales in August, 2019. Single family average prices crept up 4.6% to $586,642. While homes appear to be selling quickly (in some case hours, not just days), the average length a home sits on the market (called DOM or Days on Market) is 36 versus 32 last year - slightly longer.
In the strata market segment, sales volumes are not as nearly as fast-paced with 70 sales between apartment, patio, and town homes selling in August this year, up 20% from last year. Condo Apartments are taking longer to sell at 51 DOM, almost 50% longer than the same period in 2019, patio and town homes reflect single family stats more closely with the average number of days to sell at 34 DOM (versus 29 in '19).
Land or lot sales tell a story as well. Canada Mortgage and Housing Corporation predicted new home construction would drop in 2020 but see a rebound in 2021. The number of building lots which have sold in the last 12 months is 150 versus 86 between September 2018 and August 2019, perhaps validating CMHC's prediction as builders gather inventory to begin the process of construction. The average lot price dropped by 7.75% over this period also (average price in 2020: $319,052; median price $270,000); this change was obviously a good opportunity for local builders to buy vacant land and begin building again heading into the late 2020/early 2021 markets. Supply chains are disrupted due to COVID-19 and one result is a recent spike in the cost of wood framing materials.
The construction industry continues to be one of the drivers of our local economy. Support your local builder!!
Builders and home buyers alike continue to take advantage of low interest rates: one local lender is quoting rates of 1.94% for a 5 year term. Together with record low inventories, this market looks promising for the short to medium term.